First-Time Home Buyer Programs in Washington

Washington State Housing Finance Commission (WSHFC) Programs:

Home Advantage Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $145,000 for a 1-2 person household in King County as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $510,400 (non-targeted areas) or $623,600 (targeted areas).

Home Advantage DPA:

Benefits: Offers up to 4% of the loan amount (e.g., $8,000 on a $200,000 mortgage) as a 0% interest deferred loan (repayable upon sale or refinance) for down payment and closing costs; available with Home Advantage Program.
Eligibility: Must use a WSHFC first mortgage; income and purchase price limits apply (same as Home Advantage Program).

House Key Opportunity:

Description: Provides up to $10,000 as a second loan (1% interest, repayable over 30 years) for down payment and closing costs; targets low-income first-time buyers or veterans.
Requirements: Income capped at 80% AMI (e.g., $77,350 in Pierce County for a family of four); must pair with a WSHFC mortgage; credit score of 620.

Local Programs:

Seattle

Seattle Down Payment Assistance: Offers up to $55,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $103,280 for a family of four).

Spokane

Spokane First-Time Homebuyer Program: Provides up to $15,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

Tacoma

Tacoma Homebuyer Assistance: Offers up to $20,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with WSHFC loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Washington areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.